STAND. COM. REP. NO. 3369

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2447
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2447, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT
     SYSTEM,"

begs leave to report as follows:

     The purpose of this measure is to clarify the Legislature's
intent with respect to the calculation of the Employees'
Retirement System's excess investment earnings under Act 100,
Session Laws of Hawaii 1999.

     Your Committee finds that the City and County of Honolulu
has challenged the interpretation of Act 100, Session Laws of
Hawaii 1999, and the application of excess investment earnings in
the state Circuit Court.  Since it is possible that the future
viability and strength of the Employees' Retirement System's
funds could be at stake, your Committee finds that continued
discussion on this bill would be advantageous.

     Your Committee has amended the measure by changing its
effective date to January 1, 3000, to promote further discussion
on these issues.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.

 
a                                                     HB2447 SD2
 
 
                                   STAND. COM. REP. NO. 3369
                                   Page 2


2447, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2447, S.D.
2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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